NPA, NIMASA still flouting FG’s directive on Naira transactions for port charges – Oil marketers
Oil Marketers have called on the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Ports Authority (NPA) to obey Federal Government’s directive on Naira transactions for ports charges.
A statement issued by the Vice Chairman II, Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Monday, Mahmood Tukur, called on the affected agencies to adhere to the Federal Government recent directive to them by transacting in the local currency for sundry charges at the country’s ports.
Tukur who further alleged that the indicted agencies were yet to comply with the directives s they have continued to collect charges in U.S dollars, noted that the situation was contributing to the rising price of petroleum products across the country, even as he stated that implementing the government’s directive would ease the high prices.
It would be recalled that Federal Government through its downstream regulator, and based on agreement reached with stakeholders, directed ports charges to be collected in Naira.
The directive was contained in a communiqué issued in November 2021, and signed by heads of the Nigeria Midstream and Downstream Petroleum Regulation Authority, Nigeria National Petroleum Company Limited (NNPC Ltd), Major Oil Marketers Association of Nigeria and DAPPMAN.
“Government gave directives that these agencies should henceforth charge marketers in Naira, but that had not been implemented. That’s a major challenge.
“The dollar price is practically driven by demand, if there is no supply, obviously the price will rise. So, every time a vessel needs to berth, we have to pay ports charges in dollars.
“Government gave directives that these agencies should henceforth charge marketers in Naira, but that had not been implemented. That’s a major challenge.
“The dollar price is practically driven by demand, if there is no supply, obviously the price will rise. So, every time a vessel needs to berth, we have to pay ports charges in dollars.
“But we are saying that can be paid in Naira. That’s one way of actually taking demand (for dollars) out of the market and it will cool the FOREX effects.
“If these products are consumed locally and destined for local ports, why is the NPA and NIMASA charging in dollars?” he queried.
“They should simply implement a directive given by the government, and we can assure them that this will also bring down the price of petroleum products,” Tukur said.
The statement also quoted Chairman of the DAPPMAN, Winifred Akpani as saying that FOREX conundrum was affecting petroleum marketers.
She noted that to charter a vessel that could convey 20,000 metric tonnes of PMS within Nigeria for 10 days, freight charges are being denominated in dollars.
“That comes to about N220 million at official FOREX rate of N440, and a whooping N440 million for petroleum marketers who have to source FOREX in the parallel market at N880.
“This implies an additional cost of N11 per litre for this transaction due to the FOREX official/parallel market differential.
“For this same transaction, Jetty fees, again charged in dollars, comes to N15.4 million at official FOREX rate and N30.8 million for petroleum marketers who source from the parallel market,” Akpani lamented.
“In the same vein, Jetty Berth is charged in dollars and comes to N2.2 million at official FOREX rate and N4.4 million at parallel market.
“Then there are port dues (NPA and NIMASA) charged in dollars, which come to N71.51 million at official FOREX rate and N142.796 million for marketers who source FOREX from the parallel market,” she added.
“Burdensome”
Akpani described the trend as “quite burdensome” which made operational expenses and procurement increasingly difficult for its members.
She stated that amid this situation, petroleum marketers compete unfavourably with the NNPC which has upper advantage.
She said the NNPC, historically, the supplier of last resort currently served as the major oil downstream company in the country with the acquisition of OVH.
“Without a level-playing field, especially one that guarantees access to dollars for all marketers at official rate, marketers’ ability to import products is continually and severely hampered.
“As a significant portion of their operations and critical operational and capital expenses are denominated in dollars.
The Association further stressed that “full availability of products, particularly PMS will experience a marked boost when access is granted to FOREX at official rate for all operators and subsidies removed completely.”
